Canaccord Genuity Downgrades Superior Plus Rating to Hold, Sets Price Target at C$12.
February 6, 2023
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Canaccord Genuity recently downgraded their rating of Superior Plus ($TSX:SPB) to Hold, and decreased the price target to C$12. Superior Plus is a leading North American energy and specialty products distributor with operations in Canada and the United States. The company is focused on providing reliable and cost-effective energy solutions to its customers, including natural gas, propane, heating oil, and related services. In addition to its energy products, Superior Plus also provides specialty chemical products and services, such as industrial chemicals and lubricants, customized fuel blends, and fire safety systems. The company is also involved in the development and operation of compressed natural gas (CNG) fueling stations.
Canaccord Genuity’s downgrade to Hold comes as the stock has underperformed the S&P/TSX Composite Index over the past few months and as the company experiences a decline in its energy operations due to decreased demand and prices. Despite this, the company has continued to invest in new businesses and expand its customer base, which has helped to mitigate some of the losses. They have also noted that Superior Plus’s long-term prospects remain uncertain, given the volatile nature of the energy industry. Investors should continue to monitor the company’s performance to assess how its various operations are impacting its bottom line.
Share Price
Despite the downgrade, news about the company has been mostly positive so far. The stock opened at CA$10.3 and closed at CA$10.2, down by 0.7% from the previous closing price of 10.2. The downgrade from Canaccord Genuity follows a recent period of strong performance for Superior Plus. This increase was attributed to higher energy prices and higher volumes of propane sales, which drove an increase in the company’s gross profits.
In addition, Superior Plus has also been making strategic investments in renewable energy and expanding its operations into new markets. The company recently announced plans to increase its presence in the United States by acquiring two propane distributors in California and Arizona. These strategic investments have helped strengthen the company’s competitive position in the industry and have contributed to its positive financial performance. Despite these positive developments, Canaccord Genuity’s downgrade indicates that investors may not be as optimistic about the company’s future prospects as they have been. While the company has made significant strides in improving its financial performance, the stock price has yet to reflect this progress. Investors will be closely monitoring the company’s performance in the coming months to see if their confidence in the company’s future prospects is justified. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Superior Plus. More…
| Total Revenues | Net Income | Net Margin |
| 3.13k | -148.7 | 0.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Superior Plus. More…
| Operations | Investing | Financing |
| 219.2 | -623.5 | 411.1 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Superior Plus. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.29k | 2.8k | 5.59 |
Key Ratios Snapshot
Some of the financial key ratios for Superior Plus are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 2.6% | -21.4% | -3.8% |
| FCF Margin | ROE | ROA |
| 3.2% | -6.3% | -1.8% |
Analysis
GoodWhale is a great tool for examining the financials of companies and analyzing their risk. SUPERIOR PLUS is one such company that can be analyzed with GoodWhale. After examining the financials, GoodWhale has assigned a medium risk rating to SUPERIOR PLUS, which indicates an investment in the company may have some associated risk. GoodWhale has also detected two risk warnings in the income sheet and balance sheet of the company. These warnings could be related to issues such as an overreliance on debt, or an unsustainable debt level. Additionally, they may indicate that the company’s income has been declining, or that its expenses are too high. GoodWhale’s risk warnings are valuable insight when considering investing in SUPERIOR PLUS. To view more detailed information about the risk warnings, users need to register on goodwhale.com. Overall, GoodWhale is a great tool for assessing the financial health of companies. It is important to understand the risks associated with investing in any company, and GoodWhale can provide valuable insights into the financials of SUPERIOR PLUS. More…
Peers
The company has a strong presence in the market, competing with other energy distributors such as UGI Corp, Naturgy Energy Group SA, and SPC Power Corp. Although each energy distributor has its own unique offerings, they all strive to provide reliable energy solutions to meet the needs of their customers.
– UGI Corp ($NYSE:UGI)
Ugi Corp is a global energy services company that provides energy solutions to customers in the Americas, Europe, and Asia. The company also offers a range of energy-related services, including energy efficiency, renewable energy, and other energy-related services. With a current market cap of 8.27B, Ugi Corp is one of the leading energy services companies in the world. The company’s strong Return on Equity (ROE) of 17.89% reflects the success of its operational strategies and ability to generate high returns for its shareholders.
– Naturgy Energy Group SA ($BER:GAN)
Naturgy Energy Group SA is an energy and services company with a presence in over 20 countries. It is one of the leading energy companies in the world, providing electricity and natural gas to more than 19 million customers. The company has a market capitalization of 23.85 billion as of 2023 and a very impressive Return on Equity of 26.36%. This signifies the company’s ability to generate a high return from its equity investments. The company’s impressive performance is due to its focus on sustainable growth, digital innovation, and customer centricity. Naturgy has also made a commitment to invest heavily in renewable energy projects, in order to reduce its carbon footprint.
– SPC Power Corp ($PSE:SPC)
SPC Power Corp is a leading provider of energy solutions, supplying electricity, natural gas, and other energy products to businesses, homes, and other customers. The company has a market capitalization of 13.9 billion dollars as of 2023, reflecting the confidence of investors in its ability to generate long-term value. SPC Power Corp also has a Return on Equity of 5.12%, which is higher than the average for the industry and indicates a strong focus on profitability. This strong performance is indicative of the company’s ability to create value for its shareholders through efficient management of its resources and capital.
Summary
Investors looking to invest in Superior Plus should be aware that Canaccord Genuity has recently downgraded the rating of the company to hold, while setting a price target of C$12. Despite this rating, the overall sentiment on the stock has been mostly positive. Investors should consider current market conditions and the company’s performance over the past year before making any decisions. Analysts believe that the stock should continue to remain attractive for investors looking for steady and modest returns.
